public private partnership · 2015-01-30 · achieving vision 2035 infrastructure development...
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PUBLIC PRIVATE PARTNERSHIPPUBLIC PRIVATE PARTNERSHIPDepartment of Economic Planning and DevelopmentDepartment of Economic Planning and Development
Land Size : 5,765 sq km
Population : 393,162 (2011)
Capital : Bandar Seri Begawan
Currency : Brunei Dollar (par to Singapore Dollar)Language : Malay, English, Chinese
No History of Natural Disasters
Adult Literacy Rate (HDR 2011)
95.3 %
Religion: Muslim Majority
Legal System of Commerce: British Common Law
Macroeconomic stability
(GCR, World Economic Forum, 2012‐13)#1 out of 144
ABOUT BRUNEI
POLITICAL STABILITY UNDER MONARCHY
His Majesty Sultan Haji Hassanal Bolkiahis the 29th ruler in an unbroken chain
since the 15th Century
STRONG ISLAMIC HERITAGE
66% of population is Muslim
58% of Brunei’s total land is reserved for conservation
EXTRAORDINARY BIODIVERSITY
OVERVIEW OF BRUNEI’S ECONOMY
GDP per capita (2011) : U$52,400 (est.)
GDP composition (2011)• Oil & Gas : 68%• Government services : 12%• Private : 20%
GDP (2011) : U$20.6bil @current prices
Crude oil exports (2011) : 154, 627 bpd
LNG exports (2011) : 985,204 MMBtu/day
Inflation (2011) : 2.0%
Source: DEPD
* Exchange Rate USD1 = BND 1.2
Largest corporation Brunei Shell Petroleum (BSP) Group Largest corporation Brunei Shell Petroleum (BSP) Group
Leading local banks
Bank Islam Brunei Darussalam (BIBD)
Baiduri Bank Berhad (BBB)
Leading local banks
Bank Islam Brunei Darussalam (BIBD)
Baiduri Bank Berhad (BBB)
Leading foreign banks Leading foreign banks
Sovereign Wealth FundBrunei Investment Agency (BIA)Sovereign Wealth FundBrunei Investment Agency (BIA)
Lead Economic AgencyDepartment of Economic Planning and DevelopmentLead Economic AgencyDepartment of Economic Planning and Development
OVERVIEW OF BRUNEI’S ECONOMY
BRUNEI’S VISION FOR THE FUTURE
Recognised for its quality of life and dynamic and sustainable economy
Aims to be one of the TOP 10 Nations in the world
ACHIEVING VISION 2035
INFRASTRUCTURE DEVELOPMENT STRATEGY IN THE VISION 2035:To ensure continued investment by government and through PUBLIC‐PRIVATE
PARTNERSHIPS in developing and maintaining world‐class infrastructure with special emphasis placed on education, health and industry.
INFRASTRUCTURE DEVELOPMENT STRATEGY IN THE VISION 2035:To ensure continued investment by government and through PUBLIC‐PRIVATE
PARTNERSHIPS in developing and maintaining world‐class infrastructure with special emphasis placed on education, health and industry.
CURRENT INFRASTRUCTURE DEVELOPMENT IN BRUNEI DARUSSALAM
All national development projects get their funding from the national development budget, the NDP administered by DEPD.
Current process involves proposed projects to be submitted to DEPD for evaluation and endorsement.
Projects must be aligned with Brunei’s National Vision : Vision 2035Vision 2035.
Once approved, a budget is allocated according to the Ministry by which the project belongs.
PPP IN BRUNEI DARUSSALAMPPP is still relatively underutilised in Brunei as compared to most developed countries including the United Kingdom, Australia, Singapore and Malaysia.PPP is still relatively underutilised in Brunei as compared to most developed countries including the United Kingdom, Australia, Singapore and Malaysia.
ON‐GOING
2000 Housing Community and Commercial Development
IMPLEMENTED
Invest, Refurbish and Operate Three (3) Blocks of Apartment at Ong Sum Ping
At the moment, PPP framework is a work in progress and DEPD is the government agency assigned to implement projects via the PPP model in Brunei.
At the moment, PPP framework is a work in progress and DEPD is the government agency assigned to implement projects via the PPP model in Brunei.
SNAPSHOT OF PPP PROJECTS
PROJECT ONG SUM PING (OSP)
Objective To add value to under‐utilised and idle government assets
Background In 17 March 2010, His Majesty consented for Bina Puri Holdings Bhd to refurbish and operate 3 empty blocks of apartment buildings at Ong Sum Ping for a period of 20 years
Benefits from PPP
1. Investment of $9.2m in the refurbishment of the apartments.
2. Government revenue received from guaranteed lease rentals of $750,000 per annum of 20 years.
3. Value optimization of government assets.
PROJECT TIMELINE
17 August 2010 Agreement Signed
18 August 2010 Implementation
August 2011 Commercial Operations
PPP PROJECT
2000 HOUSING COMMUNITY AND COMMERCIAL DEVELOPMENT
Objective Reduce reliance on government resources to provide social infrastructure.
Background The completion of the 2000 national housing project at Kuala Belait will create requirements for commercial and community facilities, e.g. parks, community hall which can be provided by the private sector through PPP.
Benefits from PPP
1. Free facilities by allowing private sector to invest in and operate the commercial area.
2. Government revenue received from land lease rentals.
PROJECT TIMELINE
16 Nov 2010 RFP advertisement
14 March 2011 RFP submission deadline
14 March 2011 Evaluation
CURRENT PPP PROJECT
To KB town
To Seria town
2000 Housing Site
Working together with Local and International Financiers
(Islamic Financing) To Localise PPP Framework in Brunei Darussalam
Improve awareness of PPP Concept for public & stakeholders To develop Public Sector Comparator
(PSC) & Value for Money (VFM) template structured for PPP
CHALLENGES
PROPOSED APPROACH
INTEGRATION WITH THE NDP PROCESS
To provide a systematic approach for implementation, it is To provide a systematic approach for implementation, it is proposed for the PPP process to be integrated to the NDP.proposed for the PPP process to be integrated to the NDP.
Proposals which have been submitted to DEPD for consideration Proposals which have been submitted to DEPD for consideration to be developed through NDP would first need to be assessed on to be developed through NDP would first need to be assessed on whether it would be more value to be implemented via PPP whether it would be more value to be implemented via PPP rather than the traditional method of sole government funding.rather than the traditional method of sole government funding.
Initial assessment to be based on agreed criteria.Initial assessment to be based on agreed criteria.
PROPOSED STEERING COMMITEE
Sets the strategic direction for Sets the strategic direction for PPP development in Brunei.PPP development in Brunei.
Sets the PPP framework Sets the PPP framework –– policy, policy, procedures and guidelines for procedures and guidelines for implementation of PPP projects. implementation of PPP projects.
Recommends projects for his Recommends projects for his MajestyMajesty’’s approval.s approval.
Members to consist of various Members to consist of various key decision makers. key decision makers.
PROPOSED INSTITUTIONAL STRUCTUREPROPOSED CENTRAL PPP UNIT
Acts as secretariatActs as secretariat to the Steering to the Steering Board. Board.
Facilitates and administers the Facilitates and administers the PPP policy and procedures.PPP policy and procedures.
Works with relevant government Works with relevant government ministries/ agencies to implement ministries/ agencies to implement their PPP projects. their PPP projects.
CORE PROJECT TEAM
Responsible for the planning, evaluation and implementation of tResponsible for the planning, evaluation and implementation of the project.he project.
WAY FORWARD
THANK YOU!
About Department of Economic Planning and Development (DEPD)
StrategyTo work with Local and International investorsto develop new economic opportunities where Brunei has competitive advantage
Mission
WeProvide Economic PlanningFor National Development
HIS MAJESTY SULTAN HAJI HASSANAL BOLKIAH SULTAN AND YANG DI-PERTUAN OF BRUNEI DARUSSALAM
Deputy Minister Prime Minister Office
Permanent Secretary
REPORTING LINE
Director General
Vision
The Centre of Excellence in Economic Planning
Department of MacroeconomicsDepartment of Economic Planning and Development (DEPD)
Prime Minister Office
Nov 2012